SAVA DRINA RIVER CORRIDORS INTEGRATED DEVELOPMENT PROJECT ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK FOR MONTENEGRO DRAFT December 2019 SAVA DRINA RIVER CORRIDORS INTEGRATED DEVELOPMENT PROJECT ESMF MNE Table of Contents 1 EXECUTIVE SUMMARY ....................................................................................................................... 1 2 INTRODUCTION ................................................................................................................................. 4 2.1 Brief Project Description ............................................................................................................................ 4 2.1.1 Objectives .........................................................................................................................................4 2.1.2 Components .....................................................................................................................................4 2.1.3 Implementation arrangements ........................................................................................................5 2.1.4 Timeline and budget ........................................................................................................................5 2.2 Objectives of this Environmental and Social Management Framework ................................................... 5 2.3 Basic information about the country......................................................................................................... 7 3 BASELINE ENVIRONMENTAL CHARACTERISTICS OF THE PROJECT AREA ................................................ 8 3.1 Geographic, Topographic and Geological Characterization ...................................................................... 8 3.2 Climate ..................................................................................................................................................... 10 3.3 Climate change ........................................................................................................................................ 10 3.4 Water Quality........................................................................................................................................... 11 3.5 Biodiversity and protected areas ............................................................................................................. 12 4 SOCIO-ECONOMIC CHARACTERISTICS OF THE PROJECT AREA ............................................................. 19 4.1 Demography ............................................................................................................................................ 19 4.2 Rural and Urban Areas ............................................................................................................................. 19 4.3 Main Economic Indicators ....................................................................................................................... 20 4.4 Local Economy of Project Area ................................................................................................................ 20 4.5 Impacts from Climate Change and Water Pollution on Local Economy.................................................. 21 4.6 Employment ............................................................................................................................................. 21 4.7 Poverty ..................................................................................................................................................... 21 4.8 Labor Conditions ...................................................................................................................................... 22 4.8.1 Overview ....................................................................................................................................... 22 4.8.2 Irregularities Identified ................................................................................................................. 22 4.8.3 Measures Taken ............................................................................................................................ 23 4.8.4 Misdemeanor Responsibility ......................................................................................................... 23 4.8.5 Informal Work ............................................................................................................................... 23 5 LEGAL FRAMEWORK......................................................................................................................... 24 5.1 The World Bank Requirements ................................................................................................................ 24 5.1.1 The World Bank Environmental and Social Framework (2016) .................................................... 24 5.1.2 Other Applicable Criteria and Guidelines ..................................................................................... 29 5.2 Overview of Environmental and Social Requirements in Montenegro................................................... 29 i SAVA DRINA RIVER CORRIDORS INTEGRATED DEVELOPMENT PROJECT ESMF MNE 5.2.1 Environmental Assessment Procedure ......................................................................................... 29 5.2.2 Waste Management Regulations .................................................................................................. 31 5.2.3 Water Management Regulations .................................................................................................. 31 5.2.4 Construction Regulations .............................................................................................................. 32 5.2.5 Regulations on Working Conditions .............................................................................................. 32 6 INSTITUTIONAL STRUCTURE ............................................................................................................. 34 6.1 Institutions Relevant for Water Management ........................................................................................ 34 6.2 Institutions Relevant for Environmental Protection ............................................................................... 35 7 ENVIRONMENTAL AND SOCIAL ASSESSMENT OF THE PROJECT........................................................... 36 7.1 ESSs Relevant to the Project .................................................................................................................... 36 7.2 Preliminary Identification of Potential E&S Impacts with Proposed Mitigation Measures .................... 37 7.3 Environmental and Social Requirements ................................................................................................ 41 7.4 Environmental and Social Screening Process (Step-by-Step) .................................................................. 42 7.5 Labor Management ................................................................................................................................. 43 7.6 Monitoring and Reporting ....................................................................................................................... 44 8 PUBLIC CONSULTATION PROCESS ..................................................................................................... 45 ANNEXES ................................................................................................................................................. 46 A. Generic Environmental and Social Management Plan for the Project.................................................... 47 B. Indicative outline of ESIA ......................................................................................................................... 53 C. Indicative outline of site-specific ESMP ................................................................................................... 55 D. Minutes from the public consultations ................................................................................................... 58 ii SAVA DRINA RIVER CORRIDORS INTEGRATED DEVELOPMENT PROJECT ESMF MNE List of Tables Table 1: Classification of water quality in Montenegro ........................................................................................ 11 Table 2: Results of field researches on terrestrial invertebrates on Ćehotina and Lim River .............................. 14 Table 3: Protected areas of DRB in Montenegro .................................................................................................. 16 Table 4: Emerald site in the DRB in Montenegro .................................................................................................. 17 Table 5: Natura 2000 sites in the DRB in Montenegro ......................................................................................... 18 Table 6: Estimated population in Montenegro for the period 2013-2018 ............................................................ 19 Table 7: Demographic profile of DRB area in Montenegro ................................................................................... 19 Table 8: Structure of population in Montenegro .................................................................................................. 20 Table 9: Key Economic Indicators in Montenegro in 2015, 2016, 2017 and 2018 ................................................ 20 Table 10: Inspection activities and measures in the area of labor relations, employment,